News

Court Declares Property Trusts to be Invalid “Shams”

Acting for the trustee in bankruptcy, James Renihan and Breanna Needham successfully obtained an order from the Superior Court of Justice invalidating two alleged property trusts established by the bankrupt, Gerald McGoey. Mr. McGoey claimed that he had placed a cottage and a farm in trust for his children, making them unavailable to his creditors. The Court concluded that Mr. McGoey had lied about when the trusts were purportedly created and that they were shams intended to defeat creditors. The assets will form part of the estate and be available to creditors. The decision is available here.